Minutes - Council - 10/09/2012 - Laserfiche WebLink

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7. COUNCIL BUSINESS 7.01: Change Purchase Entities for Property at 14590 Armstrong Boulevard NW (Wiser Choice Liquors) Councilmember Wise recused himself due to a potential conflict of interest and left the Council Chambers at 7 :12 p.m. City Attorney Goodrich reviewed the staff report and stated the rationale for removing Cases 4:10, and 4:13 from the Consent Agenda because those cases deal with transfer of funds for the purchase of 14590 Armstrong Boulevard NW (Wiser Choice Liquors) and terms for the sale of Outlot A. He stated it is staff's recommendation that the funds be transferred from the City to the HRA to allow the ability to purchase the Wiser Choice Liquor property and that Outlot A be transferred to Sophia Ramsey, LLC, in exchange for loss of an access. Councilmember Strommen asked how State law prohibition on this purchase had not come to light until this late date, noting the Council had been working on negotiations over a period of months and went through the process of adopting a resolution to address how to mitigate conflicts with interest. City Attorney Goodrich described the timing of this consideration that began with the HRA and was then transferred to the City. He explained he discovered the Statute states it is for "goods and services" but real estate is excepted. City Attorney Goodrich advised the HRA has the authority to purchase properties for redevelopment and for utilities and infrastructure to enhance development. It was noted that part of the Wiser Choice Liquors property will be used for right - of -way for the Sunwood Drive improvement project and future Armstrong Boulevard/Highway 10 project and some parts may be joined to others for redevelopment. Motion by Mayor Ramsey, seconded by Councilmember Backous, to affirm that because of State law restrictions, the City will not purchase from M &W Holdings, LLC the real property located at 14590 Armstrong Boulevard, and legally described as Lot 2, Block 1, Hauser Addition, Anoka County, Minnesota. Further discussion: The Council discussed its support for the motion and intention to discuss during the HRA meeting whether the purchase results in subverting the spirit of the law. Motion carried. Voting Yes: Mayor Ramsey, Councilmembers Backous, Elvig, McGlone, and Strommen Voting No: None. Absent: Councilmembers Tossey and Wise. 7.01.a: Adopt Resolution for the Transfer of Funds to the Housing and Redevelopment Authority (HRA) Fund to Carry out the Goals of the Redevelopment Plan of 2007 City Attorney Goodrich recommended action, if taken, be subject to the HRA approving purchase of this property. If not approved, the funds would not be transferred. City Council / October 9, 2012 Page 7of10